Hedge Fund Sues Treasury Over Fannie, Freddie Takeover

Law360, New York (July 8, 2013, 12:43 PM EDT) -- Hedge fund Perry Capital LLC on Sunday hit the U.S. Treasury Department with a lawsuit accusing the government of wrongfully altering stock purchasing agreements with Fannie Mae and Freddie Mac, allegedly allowing it to illegally liquidate the company and reap more than $200 billion over the next decade.

A crucial change to preferred stock purchase agreements in 2012, the so-called Third Amendment, unlawfully speeds up the liquidation of Freddie and Fannie, entitling the federal government to a “complete sweep” of the companies' net worth and “extinguishes”...
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